Ideco and FBAR filling.

[konbinibento]

I currently have Ideco "savings" for the tax benefit. I need to file FBAR this year. Under type of account for the FBAR report there are 3 options for the type of account; Bank, Securities and other. Since I'm only using it as a savings account would I simply choose "Bank"? I thought perhaps "Other" but I am not certain how I would describe the type of account. Any help is appreciated.

[beanhead]

No expert, but I would presume securities, since it is in a securities account. Isn't it?

[TokyoWart]

Where is the account located? If the iDeCo is at a bank (e.g. Postal Bank) I would answer "bank" and if at a brokerage (e.g. Rakuten Securities) I would answer "Securities".

[konbinibento]

Thanks for the replies!! The account is with SBI Benefit Systems. I assume that falls under "Securites"? I thought perhaps I could select "Other" and state the account is a Defined Contribution Pension savings plan. After reading the Fbar instrucions it states you don't need to report the account if it's "Held in a retirement plan of which you’re a participant or beneficiary". Would that mean that I am not required to report this account? Man, this is all a bit confusing!

[TokyoWart]

My understanding of the reporting of retirement plans on FBAR is that you do need to report if it is similar to a 401K account where you have an individual account which shows your interest but you don't if it is essentially invisible to you like the retirement bonuses we often accumulate while working at Japanese companies but don't actually receive or know the balance of until we received the (taxable) lump sum payment. For FBAR the penalties for under-reporting are pretty Draconian but I have never heard of a penalty for over-reporting so if I were unsure I would report (and I believe iDeCo are reported).

[konbinibento]

Great point!! I will report it and I assume if I make a mistake on the type of account it isnt an issue that they will pursue. It seems they are most concerned about disclosure. Thanks again for the help!!